Cameroon: more than $15 million from the African Development Fund to improve public finance management | African Development Bank

The Board of Directors of the African Development Fund gave the green light in Abidjan on December 12, 2022, to allocate USD 15.64 million in funding to Cameroon. These funds are intended to implement the public finance governance support project.

The African Development Fund, the African Development Bank Group’s concessional loan, is providing a $14.61 million loan and a $1.03 million endowment. The overall objective is to strengthen the institutional and organizational environment for public finance management by mobilizing more tax revenues and promoting the efficiency of public spending.

The project will support Cameron’s Directorate-General for Taxation in developing and implementing its modernization plan through the dematerialization and digitization of the tax system. This will make it possible to improve the efficiency of tax revenue mobilization, broaden the tax base beyond oil and better secure revenue by mitigating the risks of tax evasion and evasion.

The project will make it possible to set up a system for analyzing the efficiency, feasibility and monitoring evaluation of the public investment budget. Project monitoring software will be purchased for this purpose. It will also become possible to draw up a manual of procedures for the review of major investment projects.

In addition, the warning system against economic embezzlement and illegal money flows will be strengthened. This includes strengthening the integrity of the regulatory and institutional framework for public finance management, with a view to improving the efficiency and effectiveness of spending. To support this activity, the project will set up a public procurement information system. It will also develop big data (massive data) on public procurement for intelligent data processing and support public procurement management

The main direct beneficiaries of the project are the state structures responsible for mobilizing tax revenues, controlling public spending and fighting corruption and illicit financial flows. The civil society platform that monitors and controls government spending will also benefit.

1^uh As of September 2022, the African Development Bank Group’s active portfolio in Cameroon included 25 operations for total funding of $1.99 billion.